Welcome to our dedicated page for Lesaka Technologies news (Ticker: LSAK), a resource for investors and traders seeking the latest updates and insights on Lesaka Technologies stock.
Lesaka Technologies, Inc. (NASDAQ: LSAK) is a leading provider of payment solutions, transaction processing, and financial technologies, predominantly operating in South Africa. The company's activities are divided into two main segments: Merchant and Consumer.
The Merchant segment, which accounts for the majority of the company's revenue, focuses on providing goods and services to corporate clients and other legal entities. This includes processing activities for customers and the distribution of prepaid airtime. The Consumer segment, on the other hand, involves offering financial services such as bank accounts, loans, and insurance products to individual customers. Lesaka charges monthly administration fees for all its bank accounts.
Lesaka's core technology, the Universal Electronic Payment System (UEPS), is designed to serve unbanked and under-banked populations. This system utilizes smart cards that function both online and offline, allowing transactions even in remote areas where traditional banking infrastructure is nonexistent. This innovative approach enables billions of people with limited access to conventional banking to engage in electronic transactions with government agencies, employers, merchants, and other financial service providers.
Recently, Lesaka signed a definitive agreement to acquire Adumo RF (Pty) Ltd for ZAR 1.59 billion ($85.9 million), a transaction expected to significantly strengthen its market position. The acquisition will be funded through a mix of stock issuance and cash, sourced from internal and external financing. This strategic move aligns with Lesaka's mission to enhance its service offerings and reach in the digital payment landscape.
Financially, Lesaka continues to demonstrate resilience despite challenging economic conditions. The company reports its financial results in USD while measuring its operating performance in ZAR. This dual reporting helps provide more accurate guidance and performance metrics to investors. Lesaka's latest earnings presentation and financial metrics for the first quarter of 2024 are available on the Investor Relations page of their website.
Lesaka remains committed to innovation and positively impacting the lives of small merchants and grant beneficiaries in South Africa by facilitating digitalization in the informal economy. For more information, visit their official website or contact their Investor Relations team.
Lesaka Technologies, Inc. released Q3 2024 results, showing an increase in revenue to $138.2 million, operating income of $0.8 million, and a reduced net loss of $4.0 million. Group Adjusted EBITDA rose to $9.7 million, fundamental earnings per share turned positive at $0.02, and revenue guidance for fiscal 2024 was re-affirmed. The Net debt to Group Adjusted EBITDA ratio improved to 2.6 times. Lesaka CEO highlighted strong performance, improved profitability, and excitement about the Adumo acquisition.
Lesaka Technologies, Inc. has agreed to acquire Adumo RF (Pty) for ZAR 1.59 billion ($85.9 million). The deal includes shares of Lesaka common stock and cash, funded internally and externally. Adumo's operations cover card acquiring, integrated payments, and corporate card services, with over 23,000 active merchants and processing ZAR 24 billion ($1.3 billion) annually. The acquisition will expand Lesaka's reach to 1.7 million consumers, 119,000 merchants, and process over ZAR 250 billion in throughput per year across Southern Africa, solidifying its position as a leading fintech platform in the region.
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